Shares of Duolingo (NASDAQ: DUOL) soared on Friday after the mobile learning platform delivered strong first-quarter growth metrics and improved its full-year financial guidance. As of 2 p.m. ET, its stock price was up 40%.
Duolingo’s revenue rose 47% year-over-year to $81.2 million, beating Wall Street expectations for sales of $77.6 million. The gains were fueled by a 60% increase in paid subscribers to 2.9 million.
The company’s language learning app is proving popular with students of all ages. Monthly active users grew 23% to 49.2 million, while daily active users jumped 31% to 12.5 million.
“All elements of our business performed well this quarter and we saw accelerating user growth, record quarterly bookings and strong margins,” CEO Luis von Ahn said in a press release. “We believe these results come from the investments we have made in R&D to drive innovation and continually make our products more effective, more fun, more engaging and more social.”
Additionally, Duolingo’s profitability is improving as it expands its subscriber base. Its net loss per share was $0.31, compared with a loss of $1.04 in the year-ago quarter. That was much better than the $0.59 per share loss analysts had expected.
These strong results and promising ongoing subscriber trends prompted Duolingo to raise its full-year revenue and earnings outlook. Management now expects revenue of $388 million to $397 million in 2022, compared to an earlier estimate of $332 million to $342 million. The company also guided for adjusted earnings before interest, taxes, depreciation and amortization of up to $3 million.
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